Can I retire at age 42 with 1,980,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $1,980,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$163,507$162,050$160,629$159,242$157,888$155,915
2 years$80,944$79,436$77,975$76,559$75,185$73,200
3 years$53,427$51,913$50,455$49,052$47,700$45,764
4 years$39,671$38,161$36,718$35,339$34,020$32,149
5 years$31,419$29,919$28,495$27,144$25,862$24,060
6 years$25,920$24,431$23,028$21,707$20,463$18,734
7 years$21,994$20,517$19,137$17,847$16,642$14,985
8 years$19,050$17,587$16,229$14,971$13,806$12,222
9 years$16,762$15,313$13,978$12,752$11,627$10,114
10 years$14,932$13,497$12,187$10,992$9,907$8,465
11 years$13,437$12,016$10,729$9,567$8,520$7,147
12 years$12,191$10,785$9,522$8,391$7,383$6,079
13 years$11,138$9,746$8,507$7,408$6,438$5,200
14 years$10,236$8,859$7,644$6,576$5,644$4,470
15 years$9,455$8,093$6,901$5,865$4,969$3,858
16 years$8,772$7,425$6,257$5,251$4,392$3,341
17 years$8,170$6,838$5,693$4,718$3,894$2,901
18 years$7,636$6,319$5,197$4,252$3,463$2,526
19 years$7,159$5,856$4,758$3,842$3,086$2,204
20 years$6,729$5,442$4,367$3,480$2,757$1,926
21 years$6,342$5,069$4,016$3,158$2,467$1,686
22 years$5,989$4,732$3,702$2,871$2,211$1,478
23 years$5,668$4,425$3,418$2,615$1,985$1,297
24 years$5,375$4,146$3,161$2,385$1,784$1,139
25 years$5,105$3,891$2,928$2,178$1,605$1,002
26 years$4,856$3,657$2,715$1,992$1,446$882
27 years$4,626$3,442$2,521$1,823$1,304$776
28 years$4,413$3,243$2,344$1,670$1,176$684
29 years$4,215$3,059$2,181$1,532$1,062$603
30 years$4,030$2,889$2,032$1,406$960$532
31 years$3,858$2,731$1,894$1,291$868$469
32 years$3,697$2,584$1,767$1,186$785$414
33 years$3,546$2,448$1,650$1,091$710$366
34 years$3,404$2,320$1,542$1,004$643$323
35 years$3,270$2,200$1,441$924$583$285
36 years$3,145$2,088$1,348$851$528$252
37 years$3,026$1,983$1,262$784$478$223
38 years$2,914$1,885$1,182$723$434$197
39 years$2,808$1,792$1,107$666$393$174
40 years$2,707$1,705$1,038$615$357$154
41 years$2,612$1,623$973$567$324$136
42 years$2,521$1,546$913$523$294$120
43 years$2,435$1,473$857$483$267$106
44 years$2,353$1,404$804$446$242$94
45 years$2,274$1,339$755$412$220$83
46 years$2,200$1,277$709$381$199$74
47 years$2,129$1,219$666$352$181$65
48 years$2,060$1,164$626$325$164$58
49 years$1,995$1,111$588$300$149$51
50 years$1,933$1,061$553$278$136$45

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 42 starting with $1,980,000, adding $6,303 every year, while hoping to spend $21,147 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 61/14/25 Blend
41$1,980,000$1,980,000$1,980,000$1,980,000
42$2,188,462$2,083,522$2,052,832$2,307,010
43$2,389,184$2,163,114$2,099,101$2,467,830
44$2,609,672$2,245,897$2,146,212$2,640,432
45$2,851,919$2,332,006$2,194,170$2,828,368
46$3,118,120$2,421,580$2,242,981$3,033,139
47$3,410,696$2,514,766$2,292,648$3,256,393
48$3,732,313$2,611,715$2,343,178$3,499,945
49$4,085,907$2,712,587$2,394,572$3,765,795
50$4,474,713$2,817,548$2,446,834$4,056,143
51$4,902,298$2,926,771$2,499,967$4,373,411
52$5,372,587$3,040,438$2,553,971$4,720,266
53$5,889,910$3,158,738$2,608,847$5,099,645
54$6,459,032$3,281,868$2,664,596$5,514,782
55$7,085,209$3,410,034$2,721,214$5,969,239
56$7,774,226$3,543,453$2,778,702$6,466,937
57$8,532,463$3,682,348$2,837,054$7,012,196
58$9,366,946$3,826,955$2,896,267$7,609,773
59$10,285,418$3,977,518$2,956,335$8,264,908
60$11,296,410$4,134,296$3,017,251$8,983,370
61$12,409,322$4,297,555$3,079,008$9,771,517
62$13,634,512$4,467,574$3,141,594$10,636,351
63$14,983,394$4,644,647$3,204,999$11,585,582
64$16,468,544$4,829,079$3,269,211$12,627,708
65$18,103,820$5,021,189$3,334,214$13,772,087
66$19,904,492$5,221,309$3,399,992$15,029,029
67$21,887,387$5,429,789$3,466,528$16,409,891
68$24,071,044$5,646,993$3,533,801$17,927,185
69$26,475,896$5,873,301$3,601,788$19,594,695
70$29,124,455$6,109,110$3,670,466$21,427,608
71$32,041,529$6,354,836$3,739,806$23,442,653
72$35,254,456$6,610,915$3,809,781$25,658,265
73$38,793,359$6,877,798$3,880,357$28,094,752
74$42,691,434$7,155,962$3,951,501$30,774,487
75$46,985,258$7,445,902$4,023,175$33,722,125
76$51,715,140$7,748,137$4,095,337$36,964,826
77$56,925,498$8,063,210$4,167,944$40,532,517
78$62,665,278$8,391,686$4,240,949$44,458,172
79$68,988,417$8,734,159$4,314,302$48,778,123
80$75,954,352$9,091,249$4,387,947$53,532,401
81$83,628,579$9,463,603$4,461,826$58,765,116
82$92,083,274$9,851,900$4,535,877$64,524,867
83$101,397,972$10,256,847$4,610,033$70,865,208
84$111,660,318$10,679,186$4,684,223$77,845,146
85$122,966,897$11,119,692$4,758,370$85,529,700
86$135,424,138$11,579,175$4,832,394$93,990,515
87$149,149,329$12,058,484$4,906,208$103,306,534
88$164,271,716$12,558,504$4,979,721$113,564,746
89$180,933,724$13,080,164$5,052,834$124,861,005
90$199,292,305$13,624,433$5,125,445$137,300,931
91$219,520,416$14,192,327$5,197,444$151,000,912
92$241,808,655$14,784,907$5,268,715$166,089,195
93$266,367,054$15,403,283$5,339,133$182,707,102
94$293,427,068$16,048,619$5,408,568$201,010,358
95$323,243,756$16,722,129$5,476,883$221,170,562
96$356,098,192$17,425,086$5,543,931$243,376,806
97$392,300,112$18,158,820$5,609,557$267,837,457
98$432,190,845$18,924,723$5,673,599$294,782,126
99$476,146,531$19,724,255$5,735,884$324,463,832
100$524,581,672$20,558,937$5,796,231$357,161,387